2014 Kentucky Revised Statutes CHAPTER 140 - INHERITANCE AND ESTATE TAXES 140.275 Exclusion of intangible personal property held in trust, under reciprocal agreements with other states.
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140.275 Exclusion of intangible personal property held in trust, under
reciprocal agreements with other states.
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It is hereby declared to be the legislative policy that Kentucky shall not be a
party to interstate double taxation under the terms of the Kentucky inheritance
and estate tax laws. Pursuant to this policy, the commissioner of the
Department of Revenue is hereby authorized to omit from the property subject
to tax under those laws, any intangible personal property of a nonresident
decedent (having a domicile in the United States) held in trust by a Kentucky
trustee if the jurisdiction (state, territory or District of Columbia) in which the
decedent was domiciled grants similar immunity to residents of Kentucky, but
only in the event the personal representative shall present evidence that the
tax has been or will be paid to the other jurisdiction. If another state, territory, or
the District of Columbia of the United States constitutionally imposes a tax on
the transfer of estates or of the distributive shares thereof, but grants immunity
from the tax in respect of any intangible property of its resident decedents held
in trust by a Kentucky trustee, then the commissioner of the Department of
Revenue is hereby authorized to exclude from the property subject to tax under
the Kentucky inheritance and estate tax laws, the intangible personal property
of a Kentucky resident held in trust in that jurisdiction but only in the event the
personal representative shall present evidence that the tax has been or will be
paid to the other jurisdiction.
It is expressly provided, however, in view of the uncertainty now prevailing with
respect to the correct interpretation of the Constitution of the United States
regarding the jurisdiction of the several states, that the provisions of this
section shall be inoperative under the second alternative until and unless an
agreement, approved as to legality by the Attorney General, between the
commissioner of the Department of Revenue as agent for Kentucky and the
appropriate administrative official of such other state, shall have been executed
and an original copy thereof filed with the Kentucky Department of Revenue.
This section is intended to apply retroactively to all estates of decedents on or
after April 25, 1936, which are subject to Kentucky inheritance tax laws.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 465, effective June 20, 2005. -Created 1942 Ky. Acts ch. 204, sec. 9.
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